UK VAT rate
The UK VAT rate is currently at 20%, it is also the standard and default VAT rate, the UK also has a reduced rate and zero rate. It applies to most services and goods including: most hot and cold foods and drinks, including takeaway and restaurants foods, energy for businesses and clothes and footwear for those aged over 14.
VAT in the EU
Each EU member state must comply with the EU VAT rules and are required to adopt a value added tax. Currently standard VAT rate can be a minimum of 15% with one or two reduced rates, but those can not to be below 5%. Some EU members have agreed as part of their EU Accession Treaty to have a 0% VAT rate on certain supplies.
Member states are free to set rates higher then the minimum 15%, the highest rate currently in operation in the EU is Hungary at 27% while Luxembourg has the lowest at 17%.
The total VAT collected by member states is used as part of the calculation to determine what each state contributes to the EU’s budget.
Any changes to the VAT rules require unanimous agreement of all EU state members.